Population Ageing

Gordana Matković

In addition to shrinking, the population of Serbia is also ageing, and this process will continue in the decades ahead. This chapter analyses three key challenges: reforming the pension system, reforming long-term care, and reducing old-age poverty. It proposes considering a number of fundamental reforms, from parametric changes in the calculation of pensions to balance the sustainability of the pension system and pension adequacy, through mechanisms to extend the retirement age and reduce the share of early retirees, to reconsidering the role of private pension insurance. Demand for long-term care for older people will grow, which will raise issues of development of community-based services, the reform of cash benefits and the introduction of additional long-term care insurance. Finally, when it comes to old-age poverty, the chapter considers options for introducing a guaranteed basic income for older people or a special module in the cash transfers program. This outlines the fundamental options for adapting these systems to new demographic realities and making decisions that are financially sustainable, adequate and democratic.